The upstart transportation company hoping to fill Bieber's void has been dealt a setback by PennDOT

Clydesdale Lines LLC, the upstart transportation company that was hoping to fill the void left by the abrupt closure of Bieber Transportation Group, has been dealt a setback.

Clydesdale founder Derek Sheldon announced Tuesday that PennDOT rejected Clydesdale's application into the federal 5311 subsidy program. PennDOT uses federal 5311 funds to subsidize service and support the connection between rural and the larger regional or national system of intercity bus service.

"We are deeply disheartened and disappointed to learn of the decision by PennDOT as this decision may severely impact passenger travel to/from Philadelphia to/from Berks County in an already beleaguered community," Sheldon said in a news release. "This decision is another major impact on transportation since the collapse of Bieber in February 2019."

PennDOT spokeswoman Erin Waters-Trasatt said PennDOT was not previously providing funding to Clydesdale Bus Lines and did not cut funding from the business."“We advised them that all resources in the Intercity Bus Program are currently committed to other services," she said.

Sheldon said PennDOT cited funding for the 5311 program, which has been weakened by its litigious battle with the Pennsylvania Turnpike Commission. PennDOT also claimed the demand for bus service to Philadelphia is too low, Sheldon said.

"We disagree with the latter statement," he said. "PennDOT is knowledgeable this line route between Kutztown/Reading to Philadelphia requires a subsidy as they have provided this subsidy to Bieber from 2009-2016."

Clydesdale started service in March using 14-passenger shuttle vans about a month after Kutztown-based Bieber ceased operating.

Sheldon said Clydesdale has been operating at a net loss and that without the subsidy its services may be impacted, including limited times, limited pickup and drop-off locations, discontinued service to Kutztown or a complete discontinuation of service from Kutztown/Reading to Philadelphia.

"Clydesdale will regroup to determine how we can continue to provide this vital community service to Philadelphia and Berks County and work with PennDOT and community officials in anticipation they would reconsider providing some subsidy assistance in any form," Sheldon said.

Despite the setback, Sheldon said he is hopeful Clydesdale remains open and operating.

"We're absolutely going to keep going because contrary to what many people think, it is a major impact on our community," he said. "Just because you don't ride the service doesn't mean it doesn't provide a tool for the community."